It’s All About The Supply Chain  

Oleh:

Forger, Gary

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Modern Materials Handling vol. 60 no. 5 (May 2005), page 20-26.
Topik: supply chain; supply chain

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: MM71.1 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

Arts and crafts retailer Michaels builds a new DC that is the centerpiece of a new supply chain strategy for its 850 stores. For many retailers, bringing on a new distribution center seamlessly is enough of a challenge. But for arts and crafts retailer Michaels, that was only the first objective for its greenfield DC in New Lenox, Ill. The next step is to make New Lenox the lead DC for implementation of a new supply chain strategy that will feed Michaels' 850 stores nationwide. This 695,000 square foot facility replaces a collection of three DCs in Lexington, Ky. As of June 14th last year, shipments to more than 120 plus stores were realigned to the New Lenox facility without the stores even noticing, says Rich Sanderson, general manager at New Lenox. It didn't take long to see improvements in distribution performance. By the end of the year, New Lenox had posted productivity gains of 35 % compared to Lexington. Inventory accuracy rose to 99.2 %. While Kentucky had 60 % turnover among workers, New Lenox' turnover is less than 40 %. Even compared to the company's established DC s, New Lenox is already holding its own. It has already posted the highest throughput of all five DC s for a single week. By the end of 2004, its overall throughput was third best. "And by October of this year, New Lenox is expected to have the highest throughput and productivity in the company," says Les Gardner, vice president of distribution and logistics. But that's only half the story. Like the other DC s, New Lenox distributes about 16,000 stock keeping units (SKU s) to stores in its 13 state region. An additional 24,000 SKU s are shipped by suppliers directly to all stores, bypassing Michaels' distribution network. That is about to change, says Gardner. The new supply chain strategy calls for all 40,000 SKUs to pass through the DC s. "We need to gain better control over all inventory and simplify the receiving process for our stores," says Gardner. Under the new plan, New Lenox will continue to stock and ship certain SKU s for the 180 plus stores in its region. Meanwhile, 8,000 SKU s now shipped directly to stores by suppliers will be stored and picked by New Lenox for all 850 stores nationwide. But rather than shipping directly to all stores, New Lenox will ship the picks to the other four DCs. Each DC will then crossdock those items to the stores in its region. "We're ready to go live with that starting in July," says Gardner. "This new strategy will let us control all of our freight movements and have visibility to all of our inventory."

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali